Til debt do us part: BMO report reveals Canadians are often unprepared for the financial realities of weddings and divorces

From venue deposits to legal fees, relationships come with financial milestones that can shape our lives in unexpected ways. 

New findings from the BMO Real Financial Progress Index reveal that while many Canadians prepare for the cost of a wedding, fewer are prepared for the financial realities that can arise throughout a marriage – and during a separation or divorce.  

The cost of saying "I do"  

For many Canadians, weddings remain a significant financial milestone, creating pressure not only for couples but also for family members and guests. According to the survey: 

• Canadians estimate the average cost of a wedding at nearly $19,000. 
• 43% were concerned about the financial burden placed on loved ones, including wedding parties and travelling guests. 
• Wedding guests expect to spend an average of $1,530 to attend a wedding. 
• 40% say attending weddings for friends or family is a major source of financial stress, rising to 49% among Millennials. 
• 63% say being married involved more financial planning than anticipated.

The cost of walking away

While many Canadians plan for their weddings, fewer prepare for the financial challenges that can accompany a separation or divorce. The survey found: 

• 60% of divorced or separated Canadians say the financial impact of ending a marriage was greater than expected. 
• The average cost of a divorce or separation reaches $4,863 before accounting for asset losses or ongoing support payments.  
• 17% report divorce costs of $10,000 or more. 
• 66% made significant lifestyle changes due to the financial impact. 
• 57% say financial disagreements prolonged the divorce process and made it more stressful. 

Legal fees, setting up a new household and child-related expenses were among the most surprising costs reported by Canadians who experienced a separation or divorce. 

Financial disagreements can also add strain to an already difficult situation. More than half (57%) of divorced or separated Canadians say financial conflict prolonged the process and made it more stressful. 

To-dos before saying "I do" 

The findings suggest many Canadians may be overlooking important financial conversations before getting married. 

• 84% of Canadians did not meet with a financial advisor before getting married.
• 77% of Canadians do not have a marriage contract or prenuptial agreement. 
• 52% of divorced or separated Canadians believe a marriage contract would have made the separation process easier. 
• 52% of divorced or separated Canadians wish they had sought financial advice sooner. 

"Many Canadians spend months and even years planning for a wedding, but fewer take the time to plan for the financial realities that can arise throughout a marriage and during major life changes. Financial planning should not end at ‘I do;' it's also about building resilience for unforeseen events and unexpected costs. By discussing finances openly, establishing shared goals and working with a trusted advisor, Canadians can create a plan that supports their financial well-being through every stage of life and helps them continue making real financial progress.”

- Anthony (Tony) Tintinalli, Head, Specialized Sales, BMO

While every relationship is different, taking a proactive approach to finances can help couples navigate both expected and unexpected life events. 

Some important steps include: 

• Having open conversations about spending habits, values related to money and financial expectations. 
• Being transparent about assets, debts and credit history. 
• Aligning on long-term goals, such as homeownership, education or starting a family. 
• Building an emergency fund to help manage unexpected expenses. 
• Seeking professional financial and legal advice when appropriate. 

“While usually completed well before the wedding, marriage contracts can be mutually updated at any point during a relationship, and when thoughtfully prepared as part of a comprehensive estate plan, they clarify outcomes, not only in the event of divorce but also upon the death of a spouse. While often associated with the wealthy, these legally binding agreements offer practical protection for everyone and, when properly drafted, can help avoid costly and time-consuming disputes.

Anyone considering marriage and looking to safeguard both their assets and their future security should consult a family law professional to understand how a marriage contract can support their long-term financial goals.”

- Carol Willes, Director, Estate Planning, BMO Private Wealth 

Building a stronger financial foundation together 

Life's biggest milestones are often emotional, but they're financial, too. By planning ahead, having honest conversations and seeking trusted advice, Canadians can build a stronger financial foundation – helping them navigate every stage of a relationship and continue making real financial progress.